MALAYSIAN PACIFIC INDUSTRIES BERHADBriefing/Selected Analyst Day... · 2017-08-23 · worldwide semiconductor market growth by region & industry europe 3.2% ytd fy 2018 8.7% ytd fy2017-4.5%

SELECTED ANALYST’S DAY

MALAYSIAN PACIFIC INDUSTRIES BERHAD

Carsem Confidential Page 2

DISCLAIMER

This presentation has been prepared by Malaysian Pacific Industries Berhad (“MPI”) for selected recipients for informationpurposes only. The information contained herein is believed to be correct as of the date of this presentation and is given insummary form and does not purport to be complete. MPI does not make any representation or warranty, whether expressed orimplied, as to the adequacy, accuracy or completeness of any such information, opinion or estimate contained and shall not beresponsible or liable for any consequences of any reliance thereon by any recipient. Opinions and estimates constitute thejudgment of MPI as of the date of this presentation and are subject to change without notice.MPI does not act as any recipient’s financial advisor or agent and the information contained herein is not intended to be reliedupon as advice to any recipient and should not be construed as an offer or recommendation to buy or sell securities. Thispresentation does not purport to contain all the information that a prospective investor may require and the informationcontained herein does not take into account the investment objectives, financial situation or needs of every recipient hence itmay not be appropriate for all persons. Each recipient is responsible to make his or her own independent assessment of theinformation provided herein and should not treat the information provided as advice relating to investment or related matters.Each recipient should consult his or her own advisers and must make his or her own independent decision regarding anyinvestment.Certain statements contained in this presentation may be statements of future expectations and involve known and unknownrisks and uncertainties. Forward-looking statements contained in this presentation regarding past trends or activities shouldnot be taken as a representation that such trends or activities will continue in the future. MPI does not have any obligation toupdate or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Eachrecipient should not place undue reliance on forward-looking statements, which is believed to be correct only as of the date ofthis presentation.This presentation is being furnished to each recipient solely for his or her information and may not be reproduced,redistributed, transmitted or passed on, directly or indirectly, to any other person or published electronically or via print, inwhole or in part, for any purpose.


CARSEM’s MANUFACTURING SITES

Carsem (M-Site)

▪Floor Space : 436K sq.ft. (40,500 sq. m.)

▪Workforce : 3,200 employees (2014)


Carsem (S-Site)




Carsem Suzhou





DYNACRAFT INDUSTRIES (DCI)

DCI is one of the largest manufacturer of lead frames in the region and is strategically wellpositioned with MPI. The market position of DCI remains strong as lead frames continue to bea bottleneck in the industry

Encouraging growth prospects with INVESTMENTS in NEW TECHNOLOGY

LEAN and COST EFFICIENT

Rolling out NEW TECHNOLOGY in the next 12 months

DCI is strategically well positioned in CHINA as ETCH QFN continues isSTRONG GROWTH in the region


CARSEM FOCUS AREAS

Digitalization

Automation Industrial

Consumer

Automotive

S-SITE

SUZHOU

M-SITE

Innovation


WORLDWIDE SEMICONDUCTOR MARKET GROWTH BY REGION & INDUSTRY

EUROPE 3.2% YTD FY 2018

8.7% YTD FY2017-4.5% YTD FY2016

ASIA PACIFIC 2.8% YTD FY 2018

12.4% YTD FY20173.6% YTD FY2016

AMERICAS

2.4% YTD FY2018

12.2% YTD FY2017-4.7% YTD FY2016

SOURCE: WORLD SEMICONDUCTOR TRADE STATISTICS

INDUSTRY STATISTICS 2016 2017 2018

Discrete Semiconductors 4.3% 5.1% 2.6%

Optoelectronics -3.8% 4.7% 3.6%

Sensors 22.7% 13.9% 6.5%

Integrated Circuits 0.8% 5.8% 3.2%

Analog 5.8% 7.5% 4.9%

Micro -1.2% 3.3% 3.3%

Logic 0.8% 6.5% 2.2%

Memory -0.6% 30.4% 0.9%

TOTAL 1.1% 11.5% 2.7%


CARSEM WILL OUTPERFORM THE WORLDWIDE SEMICONDUCTOR MARKET

1.1%

11.5%

2.7%

2016 2017 2018e

2016 MARKET CONDITIONS

Market was up 1.1% in 2016 toUS$338.9 Billion, an all time high

Favorable market conditions forcommodity memory gainedmomentum in the second half of 2016and raised the outlook for 2017/2018

Wireless and compute were the largestend markets

Wireless grew 9.6% driven bysmartphones and the exposure to thememory markets. Compute revenue,declined 8.3%, as it continued to bedragged down by a sluggish PC andtablet market

2017 MARKET CONDITIONS

2017 is forecasted to be strong with11.5% growth to US$377 billion. TotalIC market growth rate, when excludingthe memory market, would be only5.9%

Positive outlook driven by inventoryreplenishment and increasing averageselling prices (ASPs) in commoditymemory and application-specificstandard products

The largest growth is expected acrosssensors, analog, and memory

Automotive demand remained strong.Industrial demand is strengthening

2018++ MARKET CONDITIONS

2018 is forecasted to be up another2.7% to US$387 billion

With memory vendors expanding theirmargins though 2017, the temptationwill be to add new capacity.

Unit production estimates for premiumsmartphones, graphics cards, videogame consoles and automotiveapplications are expected to remainstrong

MARKET GROWTH

5.9%Excluding memory devices

CARSEM 3.3% 5.5% - 7.5%


PRODUCT - CARSEM IN AUTOMOTIVE (APPLICATION & SYSTEM INVOLVEMENT)

Level Sensors

GPS Navigation

Infotainment Systems

Current Sensors

Inertial Sensors

Climate ControlPressure Sensors

Fuel Tank SensorTransmission Control

Automatic Brake Systems

Airbag Systems

Stability Control Systems

Tire Pressure Monitoring

Position SensorsEngine Management

Battery Management

Park Assist Systems

Gas Sensors

Magnetic Sensors

System Basis Chips (SBC’s)

Power Switches

Power Regulators


PRODUCT - CARSEM IN COMMUNICATION

Accelerometer

Magnetometer

Proximity

Gyroscope

Light Sensor

Barometer

Touch screen

GPS

Bluetooth

NFC: Near Field

WiFi

Camera

GSM / CDMA Cell

Audio

Humidity SensorTemperature

• Devices that can be found in both “Fan In” & “Fan Out” WLP • Devices that can be found in both Fan Out” WLP & “Flip Chip” • Devices that can be found in both WLP or “Flip Chip”

Carsem Participates in these areas


PRODUCT - CARSEM IN SENSORS / POWER MANAGEMENT SYSTEMS USED IN SERVER SYSTEMS / IT ROOMS

Temperature

Liquid Detection

Humidity

Locks

Vibration

Smoke Detection

Door contact

Alarm


MPI VISION

GLOBALLY PREFERRED OSAT PARTNER FOR AUTOMOTIVE

ACQUIRING TECHNOLOGIES

FO-WLP

Module level assembly capable

Thermal material (>100mW/K)

2.5D & 3D Packaging capability

Cavity Package (Film Insert mold)

Tri-Temp Automotive Strip Test

New Automotive requirement (AEQ100-06 & higher temp)

CARSEM

IPOH

CUSTOMERS

RESEARCH CENTERS

CAPABILITY

PEOPLE

Dynacraft

RESEARCH CENTRE

FINLAND

CHINA

RESEARCH CENTRE

EXISTING CAPABILITIES

Basic MEMS testing

Room Temp Strip Testing

MIS (single & Multi Die)

Thermal material (40mW/K)

Cavity Package (Pre-molded)

Automotive grade 0 capability

UPSTREAM BUSINESSES

MIS SiP/MCM capable with MIS

ACQUIRING CAPABILITIES

GLOBALLY PREFERRED OSAT PARTNER FOR AUTOMOTIVE

RESEARCH CENTREGERMANY


BUILDING A COMPETITIVE ADVANTAGE

TIMELINE & PROJECTS

EXP

ERIE

NC

E &

CA

PA

BIL

ITY

Y2000 Y2013 Y2014 Y2017Y2012 Y2015 Y2016

The journey starts back in Y2000. The initial segment was in standard automotive applications such as Automotive System ICs

- Airbag systems- Engine management systems- Transmission control systems- Alternator electronics

INVESTING IN AUTOMOTIVE

ENGINEERING EXPERTISE

CUSTOMER CONFIDENCE

ZERO RROR

EQUIPMENT

KNOWLEDGE

MATERIALS

JOURNEY

PEOPLE

Project (2nd source )Under the hood applicationAbsolute and Differential Production

Project (2nd source) Under the hood applicationMagnetic sensor (ABS) Safety Production

Project (2nd source) Under the hood applicationAmplifier sensor Production Project (1st source)

Under the hood applicationPressure Sensor

Project (2nd source) Tri-axis Hall sensor

Project (1st source) Under the hood applicationAir bag / ECUAcceleration sensor

Project (1st source) Peripheral pressure sensor

Project (1st source) Pressure sensor

Y2012, Carsem starts into MEMs sensor segment in custom and standard packages in acceleration, pressure, angular rate and inertial sensors.


BUILDING A COMPETITIVE ADVANTAGE

INVESTMENT IN AUTOMATION

UNREPLICABLE QUALITY STANDARDS

FOCUSSED CUSTOMER STRATEGY

NET CASH

FOCUS ON KEY SEGMENTS

DEDICATED ENGINEERING TEAMS

FULL AUTOMATION - NO HUMAN INTERFACE

“MOVING TOWARDS INDUSTRIAL 4.0”

“ACHIEVED ZERO ERROR”

“TOP 6 /10 AUTOMOTIVE VENDORS are CARSEM’S CUSTOMERS”

“AUTOMOTIVE FOCUS TEAMS”

“AUTOMOTIVE, SERVER”

“NET CASH FOR M&A AND INVESTMENTS”

GOAL


AUTOMOTIVE


GLOBAL AUTOMOTIVE SEMICONDUCTOR MARKET

The Global Automotive Semiconductor market is expected to reach an estimated ~$48 billion by 2022

and it is forecast to grow at a CAGR of ~6.4% from 2017 to 2022.

SOURCES: McKinsey&Company, M&M, Carsem ANALYSIS

4.1

6

7.7 8

.5

4.85

11 1

1.7 12

.8

7.4

JAPAN CHI N A N ORTH AM ERI CAS EUROPE ROW

2015 2022 2015 2022 2015 2022 2015 2022 2015 2022

3 9.0 6.1 6.1 6.5

AUTOMOTIVE – SEMICONDUCTOR SALES, $ Billion

ANNUAL SALES GROWTH, %

The Asia-Oceania region has emerged as a major automotive hub with the majority of the market share interms of vehicle production as well as sales. The primary reason for this trend is the growing Chineseautomotive market. This market has evolved into one of the largest producer of vehicles andconsequently the largest consumer of automotive semiconductor across the globe.


GLOBAL AUTOMOTIVE SEMICONDUCTOR MARKET

The most significant factor driving the automotive semiconductor market is the increasing vehicleproduction which, in turn, is leading to the rise in demand for automotive semiconductors

Source: McKinsey&Company, Reportlinker: Cision Pr Newswire

MAJOR GROWTH DRIVERS FOR AUTOMOTIVE SEMICONDUCTOR MARKET

2,750

720

30

4,000

1,200

1,500

NEW CAR SALES

AFTER MARKET SALES

RECURRING REVENUES

GLOBAL AUTOMOTIVE REVENUE, $ Billion

2016

Global Automotive Revenues could reach $6.7 Trillion by 2030, growing at 4.4% annually

2030

Growth of autonomous driving

5.0%

6.4%

7.2%

8.3%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2000 2005 2010 2015

AUTOMOTIVE SEMICON SALES, % of TOTAL SEMICON SALES

78%

Increased connectivity

Vehicle electrificationAdvanced vehicle

safety

Growing government regulations regarding

CO2 emissions

Increased demand for comfort systems


MOBILITY TRENDS - WHAT’S AHEAD FOR AUTOMOTIVE SEMICONDUCTORS

Source: McKinsey&Company

24%

28%

24%

17%

22%

23%

21%

21%

10%

12%

2020

2015

BODY SAFETY DRIVER INFO POWERTRAIN CHASSIS

AUTOMOTIVE SEMICONDUCTOR DEMAND BY CORE SEGEMENT, % of Total

Advanced Driver Safety

Features

Collision Warning

eCall Telematics

Tire-PressureWarning

NavigationPower-

trainEngine Control

SELECTED POCKETS OF

HIGH GROWTH

Within each core application segment, there are pockets of growth; Carsem is already positioned in some of these segments

Optical & Sensor 17%

Discreet 7%

Analog 29%

Logic 10%

Micro Components

30%

Memory 7%

Image Sensor Sensors & Actuators LED

Power Transistor

Rectifier & Diodes

Small Signal

General Purpose

Application Specific IC

Application SpecificStandard Product

Application SpecificStandard Product

Sensors & Actuators

General Purpose

MPU MCU DSP

NAND DRAM NOR

11 4 4

4 1 1

7 6 4

9 7 1

14 9 3

19 5 -1

Automotive device sub-segment CAGR, 2015-20Segment Share, %

of total in 2020 All major automotive-semiconductor–device segmentscontain pockets of growth

Although the opportunities ahead appear vast, they will differsignificantly by geography, automotive-application segment,and device segment

Americas and Europe account for most demand in automotivesemiconductors, but China will lead the world in annual salesgrowth

Carsem is well positioned with customers in the 3 geographiesto capitalize on the automotive opportunity


INDUSTRIAL


INCREASING DEMANDS ON IT & INFRASTRUCTURE

1st PLATFORM

2nd PLATFORM

3rd PLATFORM

MOBILECLOUD BIG DATA

SOCIAL

MOBILE DEVICES

PC

TERMINAL

LAN/INTERNET CLIENT/ SERVER

MAINFRAME , MINI COMPUTER

TENS OF THOUSANDS OF APPS

THOUSANDS OF APPS

BILLIONS OF USERS

HUNDREDS OF MILLIONS OF USERS

MILLIONS OF USERS

MILLIONS OF APPS

TWO DISTINCT MARKET SEGMENT DRIVING THE SERVER MARKET

1 23rd PLATFORM

This segment is largely being driven by the increase in demand for cloud

services and the growth of cloud-service providers

2nd PLATFORMThis segment is the client/server

system, which began in the mid 1980s with PCs tapping into mainframe

databases and applications- highly consolidated and still allow for

advanced management and automation


IMPACT OF IMPROVED POWER EFFICIENCY

180 MW225 MW

DCDC

80% Efficiency

One LargeDatacenter

AT 80% EFFICIENCY

234.4 MW225 MW

DCDC

96% Efficiency

One LargeDatacenter

AT 96% EFFICIENCY

The same DATA CENTER can house additional 30% more servers at 96% efficiency

300k servers

390k servers


CARSEM’S COPPER CLIP APPLICATIONS

5 W 15W 45W 75W 160 W

Tablet Ultrabook Laptop Desktop Server/Telecom

8mils 5mils 4mils 2mils (10µmCu/40µmSi/10µmCu)

Die Thickness Reduction to improve Thermal Efficiency

Exposed Clip 60µm die

Cu Metallization

2006 - 2014 2015 2016 2017 2020

VR13 Technology

VR14Technology

VR13 Technology increases the Power Conversion Efficiency to 96%

http://3.bp.blogspot.com/-Wc3Iuzs3k_Y/T2OgkxKTygI/AAAAAAAAAhs/zLNxrOe9j70/s1600/desktop-pc.jpg


SUPER THIN 2 MILS TAIKO WAFER SPECIAL PROCESS - TAIKO RING REMOVING PROCESS

Fully Automatic Taiko Wafer

Mounter

Fully Automatic Taiko Ring Dicing and

Removing

Taiko Process

ConventionalProcess

Taiko Conventional

Grinding


CONSUMER


GLOBAL SMARTPHONE MARKET

China accounted for 10 of top 14 leading smartphone suppliers in 2016, with are 39% share

MAJOR GROWTH DRIVERS FOR SMARTPHONE MARKET

Smartphone Volumes are expected to have a CAGR (2016-21) of 3.8%, Driving Annual Shipments to 1.77 Billion by 2021

Growth of 3rd Party Application Systems

Expanding Internet User Base

Increasing Replacement Demand

Faster Data Networks

Growing Popularity of Multi – Sim

SmartphonesRising consumer

Spending in Developing countries

22

6

13

05

I OS AN DROI D

CAGR2016 / 21

Worldwide Smartphone Platform Shipments,2016 (millions)

3.7% 3.9%

SAM SUN G APPL E HUAW EI OPPO V I V O OTHERS

Top Five Smartphone Vendors, Market Share, and Y-O-Y Growth, Q1 2017

22.8% 14.9% 9.8% 7.4% 5.4% 39.9%

Market Share, Q1 2017

0.0% 0.8% 21.7% 29.8% 23.6% -1.0%

Y-O-Y Growth, Q1 2017

Source: IDC


APPLICATIONS OF CAVITY PACKAGES (SMART PHONES)

Y 2014 Y 2021

Microphone x2 Pressure

AccelerometerGyroscopeMagnetometer

2-in-1 (6A-IMU)

ALS ProximityFingerprintHRM CIS x2

2-in-1

Pressure Microphone x3Gas Sensor

AccelerometerGyroscopeMagnetometer

2-in-1 (6A-IMU)

ALS ProximityRGB CIS x4Laser RangerIR SensorFingerprintHRM CIS x2

3-in-1

12 SENSORS 20 SENSORS

Carsem is participating in these areas


APPLICATIONS OF CAVITY PACKAGES (WEARABLES)

Carsem has the technology to participate


PACKAGING / ASSEMBLY TECHNOLOGY NEEDED

3 MAIN HUBS FOR SENSORS (PACKAGING REQUIREMENT)

INERTIAL ENVIRONMENTAL OPTICAL


FUTURE TECHNOLOGY DRIVERS

(Dissipation of Heat coupled with Power efficiency)

INTERCONNECT SCALING

FORM FACTOR

POWER DELIVERY

SENSING

(Managing interactions between Silicon/package/PCB including footprint and short signal path)

(Meeting Form, Fit & Function boundary conditions of the system especially thinner and smaller footprint)

(Interaction between environment, System and human)


FUTURE MATERIALS TECHNOLOGY OUTLOOK

Thin And Flexible Circuit Boards Epoxy Based Flexible Resins


MPI – SHARE PRICE MOVEMENT AND MARKET CAP GROWTH

1,350.0

1,550.0

1,750.0

1,950.0

2,150.0

2,350.0

2,550.0

2,750.0

2,950.0

MC

AP

RM

(M

)

MALAYSIAN PACIFIC INDUSTRIES (MPI) – MCAP TREND LAST 12 MONTHS

RM 2,696M

RM 1,528M

RM 14.2

RM 8.0

SHARE PRICE

SHARE PRICE


SUMMARY


SUMMARY

Targeting to outgrow the industry over 2 year plan

Recruiting key talent

Focus on introducing new products in key segments – Automotive & Servers

Investments towards Industrial 4.0

Sales organization strengthened in key markets

Net Cash ($422M for investment & M&A)


THANK YOU

Documents

MALAYSIAN PACIFIC INDUSTRIES BERHADBriefing/Selected Analyst Day... · 2017-08-23 · worldwide semiconductor market growth by region & industry europe 3.2% ytd fy 2018 8.7% ytd fy2017-4.5%